Zijin Considers Recovering Pascua-Lama with Barrick

Posted: 11/11/2014 08:11:47 Edited: 11/11/2014 08:11:16 Clicks: 2422

According to Felipe Saavedra, mining minister of San Juan Province, Argentina, China's largest gold producer - Zijin Mining - is considering cooperating with global industry leader Barrick Gold Corp and recovering the development of Pascua-Lama, a mining project at the Andes.

The stock price of Zijin Mining fell by 1.5%, to 1.95 HKD / share, in Hong Kong after the announcement.

Saavedra said, "Zijin Mining’s officer has inspected the gold and silver mines, and intends to invest the project across the border of Argentina and Chile, which has been shut down.” He added that he had met Zijin’s personage in China as a member of Argentine delegation.

Because of the potential problems of water pollution disputes and court injunction, Barrick last year stopped the exploit of the $ 8.5 billion project in Chile. Under the occasion of falling gold prices, the company said it is seeking to obtain explicit permission and holds an open-minded attitude toward cooperation. Plants and most critical infrastructure are established in San Juan Province.

When referring to Zijin Mining, Saavedra said, "They have told us that they are interested in this cooperation and want to meet the governor of San Juan."

So far this year, Barrick stock has plunged 31% cumulatively. Previously, the company appointed WooC.Lee as president of China, seeking closer ties with the world's largest gold consumer.

Aurora Williams, Chilean Mining Minister, disclosed on May 28 this year that although they had reached an agreement with community organizations which prevent the project, Pascua-Lama project still needed meeting technical requirements before recovering.